VAT Management
Accounting software that automates the VAT calculations and categorization saves the cost of human resources and prevents miscalculations. Choosing the best software that incorporates a VAT management feature can be a difficult task. We look at the various top ranges of products in the market and how the feature functions within their accounting software.
VAT Management in the Top Providers
We compare some of the most trusted VAT management features and list their advantages and disadvantages. It helps companies to streamline the selection process when choosing a solution for the company.
Businesses can update past payments to include VAT received by manually updating it in the accounting software’s inbound payments. Invoices that have VAT allocated will automatically update the VAT payable total in the reports.
If the business pays VAT from the Holvi platform, it’ll automatically update all totals throughout the accounting platform. The business can move VAT payments to various bank accounts listed on the platform, the tax account or a separate account, and the tax account later on. The Holvi VAT management feature offers a tool to calculate and charge reverse VAT if a company is liable to pay international suppliers.
Pros
- Holvi can invoice in various currencies that include localized VAT percentages
- Can integrate with various payment systems
- Can separate VAT amounts and categories for customized monthly reports
Cons
- Past inbound payments must be updated individually during migration
Bunq is an exciting and fresh approach to business banking for a smaller operation. Its app is focused on mobile compatibility, making it quick and easy to manage payments while on the go. Bunq also has an Auto VAT feature that simplifies the process of keeping track of VAT payable amounts.
Each invoice a business sends out can be categorized according to precise percentages. The app has reporting functionality that makes it quick for the accounts department to prepare VAT submissions. It saves time and money as the hours and manual labor needed to file VAT is drastically minimized.
Pros
- VAT payable balance automatically kept aside for tax payment
- User-friendly mobile application
- Intuitive predictions on future spending and proposed budgets
Cons
- Not integrated with more traditional accounting software such as SAP, Sage, or Quickbooks
Pleo is a comprehensive accounting software platform that is well suited to larger organizations with dedicated or outsourced accounting departments. It integrates seamlessly with Quickbooks and Sage, making sure the business does not have to lose any data or functionality. The VAT Management feature is comprehensive and all-inclusive for local and off-shore trading.
Once the initial set up of tax codes and expense categories are created, the process becomes smooth and hassle-free to upload invoices and expenses to the platform. The business can split VAT on each invoice into various categories. Pleo features a foreign VAT reclaim tool making it easy to manage purchases from international vendors. All reports can be customized and automated for filing taxes effortlessly per category and codes.
Pros
- Simple integration to existing software platforms through plug-and-play
- Use a phone camera to upload expense invoices to a database quickly
Cons
- VAT analytics are per category and not a sub-category
Summary
The automation of VAT processing and filing has brought about an increase in productivity and savings for countless firms worldwide. Accounting is one of the most expensive operational costs within any business that is liable for VAT. Software with VAT management features cuts down on human resources expenses and potential fines from the taxman for incorrect or late VAT submissions.
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